1. Injection molding machines are a key player in modern plastic manufacturing, widely used in the production process of spare parts in various manufacturing industries such as packaging, home furnishings, home appliances, automobiles, and 3C. Due to the diversity of demands, the performance requirements of injection molding machines also vary. For example, 3C manufacturing will require injection molding machines with higher precision and intelligent control, while the automotive manufacturing industry will require greater locking force and energy efficiency. On the other hand, the technology of modern servo motors and integrated electronics continues to mature, driving the continuous improvement of the technical level of injection molding machines. Continuous technological progress is a necessary condition for enterprises to maintain long-term market competitiveness.
2. The continuous penetration of plastic materials and polymer materials in various industries, as well as the increasing per capita plastic consumption in China, have led to a compound sales growth rate of over 10% in the injection molding machine industry since 2000. From an overall industry perspective, the impact of a single industry on the demand for injection molding machines is limited, and manufacturing investment has a significant impact on the demand for injection molding machines. Due to the continuous decline in the growth rate of fixed assets in manufacturing from 2012 to 2014, the injection molding machine industry maintained an annual growth rate of about 10%. Since the second half of 2016, the growth rate of investment in the manufacturing industry has begun to rebound, with monthly investment orders in December reaching 1.7 trillion yuan, a year-on-year increase of nearly 10%. By the first half of 2017, China's manufacturing fixed assets investment completed an increase of 5.5%, 2.2 percentage points higher than the same period in 2016. As an important spare parts manufacturing equipment, the recovery of manufacturing investment in injection molding machines has directly driven the growth of industry demand.
3. In judging the sustainability of future demand, we believe that manufacturing demand is expected to be supported by both updated demand and manufacturing investment. Firstly, it serves as a foundation for updating demand and upgrading production capacity; The second is that investment in the manufacturing industry is truly improving, and corporate capital expenditures are shifting towards expansion.
4. At present, there are many brands in the domestic injection molding machine industry, with Japanese companies, European and American companies, and domestic brands occupying a place in the industry, such as Zhuyoude Mage, Miraron, and so on. In terms of industrial concentration, the share of enterprises with competitive advantages continues to expand, and the market concentration continues to increase, concentrating towards enterprises with technological advantages, brand advantages, and channel advantages. However, in the overall stable situation, competition among various enterprises has also made industry rankings full of changes, including highlights. For example, the continuously rising ranking of Yizhimi has shown a faster growth rate than the industry and other enterprises.
5. At present, in the global plastic molding equipment industry market, European and American countries and Japan still occupy a leading position. Domestic injection molding machine equipment in China occupies the mid to low-end market. With the increasing competitiveness of the domestic injection molding machine industry, the localization rate of China's plastic machinery market is also constantly improving. In 2015, the localization rate has reached 81%, and plastic machinery produced by domestic enterprises is occupying the main share of the domestic market. At the same time, from 2006 to 2015, the export value of plastic machinery in China increased year by year, while the import value has decreased significantly in recent years. The reverse balance has continued to shrink and a trade surplus appeared in 2012, and has since continued to expand. China's plastic machinery production is gradually gaining more international market share.
